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Victory Capital's May AUM Decline on Money Market Outflows

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Victory Capital Holdings (VCTR - Free Report) announced assets under management (AUM) by its subsidiaries of $127.7 billion for May 2020. The results reflect 3.1% fall from $131.8 billion recorded as of Apr 30, 2020.

The closing of Charles Schwab’s (SCHW - Free Report) acquisition of USAA’s Investment Management Company in the reported month resulted in a transfer of assets, mainly consisting of short-term money market funds, which were subject to a revenue sharing arrangement. Thus, Money Market/Short-Term Assets declined 68% sequentially to $3.8 billion. Moreover, certain long-term assets were transferred due to the closing of the acquisition.

At the end of May, the company’s U.S. Mid Cap Equity AUM grew 5.8% from April-end to $22.4 billion. U.S. Small Cap Equity and Global/Non-U.S. Equity AUM of $14.1 billion and $10.7 billion increased 6.2% and 4.6%, respectively. Further, U.S. Large Cap Equity AUM rose 5.2% from April to $12.5 billion.

Victory Capital recorded $28.8 billion in Solutions, which were up 3.5% from $27.9 billion reported in April. Other assets increased 6% to $194 million on a sequential basis. However, Fixed Income assets were $35.3 billion, which declined 0.5% from the prior month.

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

Shares of the company have lost 10.6% over the past year compared with 4.9% 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.

Performance of Other Asset Managers

Cohen & Steers (CNS - Free Report) reported preliminary AUM of $63.8 billion as of May 31, 2020, which increased 2.7% from the prior-month level. Market appreciation of $1.4 billion and net inflows of $428 million were partially offset by distributions of $199 million.

Franklin Resources’ (BEN - Free Report) preliminary month-end AUM balance as of May 31, 2020 increased 3% sequentially to $617.6 billion. This was largely driven by strong market performance and lower net outflows.

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