Victory Capital Management, Inc. (VCM) is a financial advisor firm headquartered in San Antonio, Texas with more than $145.5 billion in assets under management (AUM). The vast majority of the firm’s client base consists of individuals, though it also works with investment companies, retirement plans, charities and more. Victory Capital Management specializes in investment management services, which includes asset allocation planning and model portfolio programs.
Victory Capital Management is a fee-only firm. This means that the entirety of its compensation is derived from fees charged to clients. This is as opposed to a fee-based firm, which might earn commissions for securities or insurance sales in addition to client-based fees.
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. VCM employs 158 advisors. 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.
What Types of Clients Does Victory Capital Management Accept?
Victory Capital Management works with mostly individuals of both a high-net-worth and non-high-net-worth variation. Other common clients of the firm include pooled vehicles, model portfolio programs, banking institutions, investment companies, pensions and other retirement plans, charitable organizations, government entities, insurance companies and corporations.
Victory Capital Management Minimum Account Sizes
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 all the way up 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 1.00%|
|International Equity||0.20% to 1.00%|
|Fixed-Income||0.10% to 0.55%|
|Other||0.10% to 0.60%|
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.
What to Watch Out For
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.
Victory Capital Management has no disclosures listed on its Form ADV, meaning it has a clean legal and regulatory record.
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 (216) 898-2400 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.
Where Is Victory Capital Management Located?
Victory Capital Management is headquartered in San Antonio, Texas. It also operates offices in Birmingham, Michigan; Boston, Massachusetts; Cincinnati, Ohio; Cleveland, Ohio; Denver, Colorado; Des Moines, Iowa; New York, New York; Rocky River, Ohio; and San Francisco, California.
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