Yahoo Finance Victory Capital (VCTR) Down 7.1% as February AUM Dips 2.3%
Victory Capital Holdings’ VCTR shares have dipped 7.1% since the company reported a decline in assets under management (AUM) for February 2023 to $157.7 billion. This reflects a 2.3% decrease from $161.4 billion reported as of Jan 31, 2023.
By asset classes, at the end of February, VCTR’s U.S. Mid Cap Equity AUM declined 1.5% from the January level to $29.5 billion and the U.S. Small Cap Equity AUM of $16.3 billion was down marginally. Further, the U.S. Large Cap Equity AUM fell 2.8% sequentially to $11.9 billion.
Also, the Global/Non-U.S. Equity AUM fell 3.5% to $14.6 billion. Victory Capital recorded $52.8 billion in Solutions, down 3.3% from $54.6 billion reported in January 2023. Fixed Income AUM was $26.3 billion, down 1.8% from the prior month’s figure. Alternative investment assets plunged 2.5% on a sequential basis to $3.4 billion.
Nonetheless, Money Market/Short Term assets rose 1.2% to $3.39 billion.
While unfavorable market performance is a near-term headwind, the sound positioning of Victory Capital’s integrated multi-boutique business model in a rapidly evolving industry and the effectiveness of the distribution platform might support its performance in the coming days.
Shares of VCTR have lost 9.5% over the past 12 months compared with the industry's decline of 8.7%.
Image Source: Zacks Investment Research
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
AllianceBernstein Holding L.P. AB has announced AUM for February 2023. The company’s preliminary month-end AUM of $665 billion decreased 2.2% from the end of January 2023.
Market depreciation resulted in a fall in AB’s AUM balance. This was partly offset by total firm-wide net inflows.
Franklin Resources BEN reported a preliminary AUM of $1,416.5 billion for February 2023. This indicated a 2.4% fall from the Jan 31, 2023, level.
For Franklin, the decrease in the reported month’s AUM reflected the impact of negative markets. These were partially offset by long-term net inflows, which included the previously disclosed $7.5 billion institutional mandate invested across fixed-income strategies.
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