Assets Under Management
Number of Advisors
Time in Business
Founded in 1894
Fee-based; broker-dealer commissions
9800 Fredericksburg Road, A2W
San Antonio, TX 78288
Victory Capital Management, Inc. (VCM) is a financial advisory firm headquartered in San Antonio, Texas. The firm specializes in investment management services, which include asset allocation planning and model portfolio programs. Earlier this year, the firm ranked seventh over five years in Barron’s Top Fund Families of 2019.
Victory Capital Management is a fee-based firm. This means that some of its compensation is derived from fees charged to clients and some are derived from commissions earned from selling securities.
- 1 Victory Capital Management Background
- 2 Victory Capital Management Client Types and Minimum Account Sizes
- 3 Services Offered by Victory Capital Management
- 4 Victory Capital Management Investment Philosophy
- 5 Fees Under Victory Capital Management
- 6 Victory Capital Management Awards and Recognition
- 7 What to Watch Out For
- 8 Opening an Account With Victory Capital Management
- 9 Tips for Finding a Financial Advisor
Victory Capital Management Background
Victory Capital Management’s origins can be traced back all the way to 1894, but it’s been a registered investment advisor (RIA) with the U.S. Securities & Exchange Commission (SEC) since 1972. The firm is an indirect, wholly owned subsidiary of Victory Capital Holdings, Inc., which is a holding corporation listed on the NASDAQ Global Select Market. Its ticker symbol is VCTR. Some members of this staff have earned professional certifications like chartered financial analyst (CFA) and chartered alternative investment analyst (CAIA). Victory Capital recently bought out USAA Asset Management, which was the advisory arm of USAA, a military-centric financial services company and bank.
Victory Capital Management Client Types and Minimum Account Sizes
Victory Capital Management works with non-high-net-worth and high-net-worth individuals, as well as investment companies, banking or thrift institutions, retirement plans, pooled investment vehicles, charities, governments, insurance companies and corporations.
The minimum required investment at Victory Capital Management depends on the specific investment strategy you choose. The firm has a plethora of account options that mostly call for a $10 million minimum. However, the full range of minimums stretches from $5 million to $25 million. The firm reserves the right to waive or alter these minimums at its discretion.
If your investable assets fall below Victory’s high minimums, you can find a financial advisor in your area with lower minimum investment requirements.
Services Offered by Victory Capital Management
Victory Capital Management primarily offers discretionary investment management services, whether it be for a high-net-worth individual, an investment company or another institutional investor.
The firm provides these services via a selection of different investment strategies. Each strategy-based model focuses on variations of these factors:
- Types of investments (equities, fixed-income securities and more)
- Certain areas of the market (Global, domestic etc.)
- Specific market capitalizations (Small-, mid- and large-cap)
- Predetermined risk levels
The firm may also provide non-discretionary investment advice to clients if the situation calls for it. This could include advice on the asset allocation or presentation of model portfolios. The firm usually provides these services to 529 college savings plans, as well as unaffiliated investment advisors sponsoring wrap fee programs.
Victory Capital Management Investment Philosophy
Victory Capital Management subscribes to modern portfolio theory (MPT), a popular investing philosophy within the investment advisory industry. It heavily emphasizes asset diversification to maximize returns for a given level of risk or minimize risk for an expected level of return.
As VCM offer so many different investment strategies, it does not have a specific affinity for an explicit time horizon. In other words, the firm has no problem managing clients’ investments for both the long and short term.
Fees Under Victory Capital Management
Victory Capital Management charges fees based on a percentage of clients’ AUM. How and when these fees are paid usually varies depending on the type of client. The exact rate you’ll receive can vary depending on the size of your account and your specific investment strategy. You can see below a range of percentages for each category of investment strategies:
Victory Capital Management Fees Investment Strategy Fee Percentage Range Domestic Equity 0.35% to 1.25% International Equity 0.4% to 1.25% Fixed-Income 0.1% to 0.55% Other 0.1% to 0.6%
Certain strategies use a negotiable fee schedule. Therefore clients who receive this kind of setup will have a separate and distinct set of fees arranged for them.
Victory Capital Management Awards and Recognition
Victory Capital Management is a well-known firm with a handful of accolades, such as:
- Ranked 7th over five years in Barron’s Top Fund Families of 2019
- Ranked 9th in Barron’s 2018 Best Fund Families
- Ranked 10th in Barron’s 2017 Best Fund Families
What to Watch Out For
Victory Capital Management has no disclosures listed on its Form ADV, meaning it has a clean legal and regulatory record.
Victory Capital Management charges certain clients performance-based fees. In the context of VCM, these fees are calculated based in part on how an account performs relative to an agreed-upon benchmark. According to the firm’s Form ADV, this “may create an incentive for Victory Capital to cause the accounts that pay a performance-based fee to make investments that are riskier or more speculative than would be the case in the absence of a fee based on the performance of those accounts.” While this has the potential to be a conflict of interest, Victory Capital must abide by its fiduciary duty to always act in the best interests of its clients.
Similarly, the firm’s status as a fee-based firm that receives broker-dealer commissions presents a potential conflict of interest. But as is the case with performance-based fees, the firm is still bound by fiduciary duty, which legally obligates it to act in the best interests of clients at all times.
Opening an Account With Victory Capital Management
There are a few different ways to get in touch with Victory Capital Management. You can call the firm’s main phone line at (877) 660-4400 or you can visit its website where it lists contact information for specific departments. You can also select your state and find your regional representative from the firm if one exists.
All information is accurate as of the writing of this article.
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