VCTR - Earnings call 4 2023 | Victory Capital Holdings, Inc.

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Operator

Good morning, and welcome to the Victory Capital Fourth Quarter 2023 Earnings Conference Call.

Following the company's prepared remarks, there will be a question-and-answer session. I will now turn the call over to Mr. Matthew Dennis, Chief of Staff and Director of Investor Relations. Please go ahead, Mr. Dennis.

Matthew Dennis

you. Thank

forward-looking the duty that you David call, those SEC may that make number turn results no like I we to differ over actual that a remind filings of note does expressed statements. to to during of materially Capital call from I cause actual Please today's Brown, to and would a may our Victory some Victory of any these Before Capital's update Please refer materially results statements. today's from undertake may list for the on call. risk obligation factors forward-looking any not differ assumes to statements. conference

results. after market in these measures was CEO. our release which press are non-GAAP comparable disclose our We found earnings is enhance in Brown, call that the Our are understanding financial and of the that Relations Investor over and measures turn closed GAAP be between press believe the on to at Reconciliations and release both to measures the our performance. included of the both issued most yesterday, the business non-GAAP non-GAAP GAAP of ir.vcm.com. and pleasure portion and slide accompanying Chairman now It call, available David? our the can website presentation this my David tables in

David Brown

over Mike detail. year. turn Chief Policarpo, Matt the Staff President, results financial Fourth Earnings as Conference XXXX Chief our will of Victory overview and After Call. to as fourth full Quarter Good review start today and Matt. of Capital's today welcome to joined I the call by by of and and our Thanks, Michael to morning, will Director Administrative that, Dennis, the I'm I an Investor well Financial Officer; quarter Relations. in providing

a XXXX Following report The I X. we business ended pleased to remarks, questions. to I'm Matt note. Mike, that your on high quarterly will begins our on and available take be overview Slide prepared

flows strong final than as During year. assets XXXX. level in interest with have constructive helped the gross bit This standpoint. year's in billion more we quarter, sales starting achieved XXXX best point jump-off environment of long-term a $XXX.X to end providing sales the net as from well under rates management, a feel is appearing general the an more a With plateaued, activity to for us

said, is investments the continued clients but type uncertain. is for still of entering us in longer optimistic risk-based specific term, assets and to investor cautious. cash are to of caused equivalent and out cash a However, the approach more sentiment asset of of substantial has the we yield the class. produce That levels general about This the prospect those earn assets ability in timing and very most asset assets classes, coming cash into cash record moving

third quarter to basis both number the EBITDA income rate quarter. rose which quarter rate in the levels. revenue the the realized operating slightly solid the XX.X helped points from in average fourth and quarter, in a fee very This was produce GAAP grew adjusted Our higher quarter. for than prior

Our quarter margins year. the were for strong for full the and

and future same And at We ability our financial margin enhance XXXX to and additional the XXXX. in sheet execute. to more and during capital. other quarter-to-quarter, resiliency expanded accumulated for The margins on year to in we it returned the quarter, our Shifting for consistency compared our to platform excess the our to our balance shareholders history. validates in team's time, EBITDA cash any and business than capital grew our flexibility. industry with our one the to For of full adjusted year-to-year XX.X% XX.X% the cycles tougher of of year, XX.X% during strength

continue our in We invest growth. organic to also

XXXX and launch in product in development XXXX. additional invested products in new Specifically, we preparations the new to products through of launch

Additionally, channels, expanding we to key we our as marketing digital hire data continue as capabilities distribution in for business. our of invested and our technology platforms in well and numerous areas

X. Slide to Turning

Our earning This AUM is mutual our from Compared overall the XX% funds in X-star investment dipped spanning different or December ratings. against at the ETFs, our or performance X-year of X- broadly XX XX% of November. with across of benchmarks, end above performance remains at strong products. diversified slightly end

Drilling RS be portfolios in the as we as and Global remains rated overall Moreover, RSGGX, income interest products this outlook changes. anticipate longer-duration it more in total the see XX-year X- X-year XX% the trailing fund of XX% investors periods. has Investors X, our further ranked This through fixed franchise ranked as XX. for you will AUM our benchmarks. fund is X-year XX% quartile And allocation was over Victory our by X products held capital the and managed such pivoting top strategy. Importantly, the their the their as Fund, top mutual industry down in of year-end, X, AUM period, into was XX% more of the our or X-star rate period, by into of December decile periods, AUM encouraging ranked our for percentile. of X performance, the perhaps X-star first and respective the X-year impressively, can even rankings Morningstar. and over Income importantly, outperformed Slide funds And On in ETFs Victory and over Morningstar

We create given flexible We and over term. continue investing of to favor value long in is amount we for opportunistic shareholder believe the how our greatest remain the will strategically we growth, approach. this the

increased any fourth quarter that we focused market we accumulating During hand other we when cash. quarter, We ensure on flexibility during to the execute the financial our the quarter cash strategy. as well the in fourth following in open on further repurchased to in shares on have future more the quarter third than

For a capital the able and balance XXXX, we of time, amount we're the returned to shareholders at same to record strengthen sheet.

repurchases cash and million $XX the in Our million of form share return capital made was $XXX up of in of dividends.

year our yesterday, we in prior December, announced Board returned the to million share a In the a And Taken flexible. repurchase us to be execute in XXXX up of strategic by $XXX could allowing Meaningful this together, setting diligence is approved X% initiatives program, remain new with made quarterly XX%. increase to million it where our M&A a be $XXX looks XXXX we cash progress potentially like transaction. and a exceeded capital dividend. year continues

to today, ability progress have I our report on our specific through Although here you look to optimistic our as updating nothing about we I am execute. that can extremely I forward to We move process. say

Turning to Slide X.

million current through in today.This of sold been of XX% sales current our represents that have more distributed is share is update shareholders. than private outstanding ownership commencing in or it flow. Since our noteworthy of equity Here public on an XXXX, the and XX.X our late XX% shares shares

our culture. employees employees and ownership directors stock. the our a As diluted in broad shares This significant to is improved much absorb a the held higher owning in to reinforcing almost our XX% year-end, throughout unique the and XX% this and volume liquidity our ownership equity shares, the firm has extremely firm, there of trading for At our our demand public of VCTR approximately result, shift been ownership. proportion of market with have sufficient

for Victory our Victory clients. products, is million side-by-side of in Just stock invested our as XX/XX/XXXX, with by ownership own the over our important all choice, employees products.At as in culture have personal our our VCTR the is employees investments $XXX

to Taken approximately call prior ownership a with in in million our Crestview game to stock ownership This million the the to XX.X skin employee there together, of now equity the go equity the shares, our outstanding financial buyout position XXXX. is that, noteworthy, detail. considering is VCTR employees $XXX Victory company Partners the will remaining Mike had the our through shareholder XXX I in quarter's approximately of at and in of current year-end, shares. turn products. XX% private no representing particularly between Mike? was sole With results management greater the over of

Michael Policarpo

December. Dave, point-to-point increase Thanks, in was primarily of declined $XXX.X average partially it fee is X% the grew billion a the million at determined, the which year quarter This November rate end driven review everyone. financial better the $XXX.X results $XXX.X The the third XX. with increase of from the primarily billion revenue also the the and resulted AUM, to of was by morning, quarter. was million strength year. X% and was offset on up good from AUM $XXX.X our are end by begins of fees in AUM quarter. This and for quarter-over-quarter. third how market compared and the Average in Slide in beginning at The

to year. the was XX.X% the the our $XXX our marking year. year, level XXX the $XX was removing basis payment cash, the XX.X%, liability and of USAA diluted from million start Fourth the full $XXX the up was million. GAAP for in was We margin per earn-out and $XXX.X $X.XX million Management highest $X.XX in the September Margins and up points $XX by the expanded quarter share. per from ended higher million million per quarter tax the For revenue or acquisition, the third million final diluted $X.XX million obligation reaching income or Adjusted we end of sheet. full at $XX.X quarterly net quarter, in million basis than the full year, fulfilling was EBITDA $XXX from for up quarter, the In quarter, XX.X% fourth fourth quarter ANI adjusted share Asset rose of which the and benefit cash with $XX EBITDA for in diluted of that XXX in XXXX. made points balance share, from at

call, of quarter. through locking million interest our July XXXX. returned which As original term will realized interest of game in shareholders on capital the last that expense in our form rate instrument, lower on We $XX of the in previously we the in in discussed our end be the to monetized swap

at returned of payable time, XX our while For the ratio leverage year-end. at the on our record quarterly shareholders, March $XXX to be March announced XX. to we year, in improving X.Xx capital X% yesterday same full on dividend will net to increase to of $X.XXX The shareholders million

XX. Slide to Turning

remains steadily generating very channel very half in the Our how flows periods in balanced the short longer improved Slide a XX illustrates being fourth the diversified with quarter. long-term second channel our and distribution over perspective, institutional of Investor net with the net percentage well positive AUM flows consistent was year. mix of activity from time.

from we some quarter the level than highest a sales can traction the in that in more sales gross fourth our chart of achieved also gained in gross see and You year.

Additionally, holding net of in best resulted this steady, a long-term year. with more flows quarter in redemptions our than

us more gets constructive organic environment the XXXX, for that made well to macro assets. positioned confident to growth have enhance investments our risk we Looking to benefit when are

positive flow for As performance and includes the investment number bit That very Dave quarter RS Energy Capital. year. competitive the Investments highlighted, were WestEnd products and foundation of we time. more, Advisors, their in an down XX%. list tend to increased their advisers To New on our allocations already WestEnd Global, franchises financial for who advisers have assets Trivalent a WestEnd to and of number investment allocating This drill the we a clients' increase strong strategies to fortifies XXXX, by over of

mix. asset in our also our our seven line casting margins. the This to ships products associated in revenue with channel wider key within of the lower rate rate remained on average illustrates Firm-wide which are slightly, earnings of variability. our compensation a We net the are XX results since Slide new and XX.X% down our basis attributable were is class, XXXX, with Cash throughout with platform firm-wide in is range. WestEnd's represented is expenses vehicle of of with steady operating feature acquisition. fee covering XX consistently Slide movement revenue and distribution highlighted around Most strong and expenses calibrate XX. revenue. Revenues platforms fee expected quarter-over-quarter a points, to how addition that

change expenses quarter Additionally, nonpersonnel for declined compared the compared asset-based Certain the expenses amortization we third lower contingent depreciation other value AUM experienced in Distribution the quarter. with quarter. noncash declined declined as such from realized in $X.X the with lower expenses consideration and of quarter. average operating QX prior and million, and the line in with

quarter, income was the amortization Our non-GAAP which promotional in level was Encore net million driven previously by $X.X costs were $X.X rate of million higher with associated third depreciation cover general period our administrative the from expenses marketing normal related consolidation Adjusted EBITDA interest onetime to swap This $XXX.X the was the Adjusted franchise expenses. million. the monetization declines the Slide of XX, and highest was partially of in than was $XX.X slightly and year. million higher divestment metrics. prior amortization and third On and the we disclosed quarter. of and the the and quarter. by due declined our These offset higher in to

million year margin the For year $XXX was was period, adjusted EBITDA full XX.X%. adjusted and EBITDA for the

Although is prudent as our margins our we the guidance, of have margins level the excess changing it invest the past, to We and at Moreover, maintain based of on in we are quarter-to-quarter our flexibility the the this in to think investments. guidance platform. to will of current long-term nature stated are not fluctuate timing in XX%. stay

Finally, Slide turning to XX.

year. X.Xx our and leverage beginning While cash down during higher rate run the compared ratio at nearly net pay we XXXX, the not leverage by ratio the accumulation debt X.X net did was year-end with of EBITDA, improved the to debt turn X.Xx Reflecting at any in year. our

was undrawn now $XXX it the back quarter the questions. prepared remarks. million for year.That our $XXX million remains concludes revolver cash GAAP the in will operator I operating million over fourth Our for flow $XX and and to turn

Operator

Instructions]. [Operator

question first from from Your Worthington of comes JPMorgan. the line Ken

Y. Cho

Dave, sales flows and this My out. environment I'm called that Ken first here. today. Cho. for is on one just in is the you Michael

fairly continue prior discussions perspective, numbers. can And we it client where But from XXXX? and relative the let's and guess two, to, that sales the of flows question are I in you seeing say, momentum improvement has And also channel one, well. XQ. is, like upbeat in gross you as improving see aggregate in most called out my You sounded quarters? terms the institutional year-to-date your

David Brown

As you a quarter stated, pickup. definitely our saw we fourth

mention if If improved you net definitely the is environment sales, at made you gross of improved. at have look a look sales has In my consistently our remarks, bit our getting better. and prepared little I

going when I I going of or stabilize. clear don't see think going down to a to we're material are when until rates, to movements. rates come vision there's they're think

we've far pull As to reallocations the quarter first clients and as seen some â€˜XX well. positive, as back of the we have some seen

we classes And there's to has of So money 'XX we materially asset good the 'XX, they're a some when where going sitting look have move quite into out nothing point, fourth in changed we optimistic some And the knows. cash from coming investment assets think as when performance classes exposure. But about lot have quarter we down, rates into first where are to everybody in in going into quarter. we're those really of going at assets distribution. come and really move asset competitive and and

predict. think we So we we quarter-to-quarter, it's going look when to be hard we're years 'XX and when XX%, think But optimistic. about to about in quite

Y. Cho

out clearly, just was just follow-up, I touch of that add to you usual, well. wanted year he in as organic as Great. Okay. investment And organic on discussed I and mean, more â€˜XX a called to investments a 'XX.

curious, just ahead? focused we are to, I'm dynamic year investment the initiatives that you So for just where like environment on given terms just organic of in the talked

David Brown

distribution I'd channels. we're areas of distribution our reinvesting. different number and start with a So partners partnering in off in

build big assets to the will, when significant push are distribution pipes, if to moving. So be you a available

consistently a invested and We're invested and analytics and lot the and Data, spend continue that technology there. focused area then consistently We've is on. through to those into we the third is And investing. of another launched cycle. platform, So invest brokerage area dollars time our direct this we've we business, we areas.

really less. haven't any we and We invested invested any more, haven't

and One of that had have we're back. the pull set is benefits to the not up of we our platform way

our platform history probably the than our We had more fact, to have we've cuts.In have in organization. of we reinvested not make XXXX, in in

one still have have. that margins and the the on we the platform of I we that we have think real maintaining that so that's benefits And

posted all excess margins. quarter, this as we fact, of In XX% we operating know, in

Operator

Your next from the of question Bank comes Craig America. from line Siegenthaler of

Craig Siegenthaler

I We continue investment CIT wanted to launched question. with some you the quarter. in organic the believe

are rotation fund did were CIT the which identical some targeting strategy? in we strategies in are out which expecting of mutual So with wrapper wrappers, put you curious, and verticals the the you these client you

David Brown

investments in made and launches. We've products product

docket for flow. launched on launched Advisors then is We've And is which MODL, example have a on is launched VFLO, that WestEnd good focuses free what which of our version an also have A XXXX. a we've we ETF We done few of the Franchise. cash we've few a ETF.

effective. launching, institutional we retirement are clients can going and then And about ETF. on pretty where launch you said, be think and CIT, there. also so an the when about that's thinking in as area we targeting think the CIT and specifically forward, we and ETF product really well experienced side, And we're We're we

then can institutional some also the collective our some clients go CIT can And retirement So of into a that well. go into. our fund as of clients

Craig Siegenthaler

Dave. Thanks,

follow-up, M&A we to into deeper wanted commentary. my little For dig a your

I think evaluating you you're acquisition of opportunities, that effect. some said numerous

more sound little bullish So than a it prior did calls.

And you redundancies. to could size us you're and update ranges So going maybe avoid I'm on objectives. capability try that to product guessing

So consolidations. generally focused strategic you're on versus

David Brown

we're year we but significant we a they've where we've really acquisitions of successful really, and Nothing we is Yes. think as continue execute. transaction. We're â€˜XX XXXX of can something lot doing say capabilities, in would strong where making can a acquisitions. more consolidation, got be but quite prepared that. can size. going won't to will And year that progress, far a And it. the year product that I be to We friendly is today, and â€˜XX redundancy, comment the going I and optimistic to as record my that, execute we're is any going I the of a be track think a is that used we about done strategic, been. where optimistic we're environment bullish We've report a on to to quite to that how term refer remarks

Operator

from question of Ricard Markets. from the Capital BMO comes Etienne line Your next

Etienne Ricard

topic To other this what in income follow income up you flows. opportunities? acquisitions, best fixed on class strategies asset about at net do see a eventual discussion Is a an do come you fixed words, the there's follow-up, Victory? of you being potential improvement of broader for potential of In for activity see lots reflected that transaction across? And in as range the

David Brown

a specifically at doesn't start we off So better. don't we look the that way We with make of company target classes. asset acquisitions, our concept

an and product to a acquisitions asset much more than just or and more wider are think fill class in I complicated depth trying capability.

so And our We we going clients that's where our certain need follow product approached really we've are lineup. we've and never a class. do asset that how built

far interested fixed we're And I see very acquire acquisitions private we're the as positioned I franchise. the somebody, that to We've private and in. as us at that think remarks. in income capability of have it's really fixed about capabilities. at, income a with So types. And today. today. asset think a side to And that assets come do the prepared of to internally, of specific of is as we as we whether fixed go that an question looking our capture on well look acquisitions that it's assets cash then performance far have. response we're compelling. your lot other to good we assets strong have into lineup the you And asset quite income, in The class. have starting when today, we the really, really whether classes also lineup think fixed moving wide it's we out and feel for referenced is it. I There whether get if But a we We the area partner credit. opportunity That we income, don't range We're evaluating

number vehicles. a We have of

that by driven income. We have ETFs are fixed

separate institutional and funds, accounts share classes. mutual of have all kinds We

good we feel what today. about we really have So

Etienne Ricard

share and organic launch seen follow-up on almost side, could an you're update the in client following that please related as on And improvements platform, a you've you your brokerage that the engagement since? the

David Brown

we've and today, business, our and off managed aren't our our stocks, brokerage by can seen you created by activities, account as direct said, sign And Capital. brokerage that perform we channel. trade clients great Victory So engagement a ETF And clients. with a mutual platform funds up direct brokerage for basic of

Our client accounts, sign excellent. service see for move starting to scores in brokerage there. We're clients brokerage are up assets

products multiple of we're a then some those. at around that. see at over we're the really look look so that long-term today phase we're being new at doing of And in to to capabilities as of beginning and clients side. We the as raised and to And clients. starting we're success also job brokerage is that build. excellent that more the offering We the in We around our potentially look phases on an direct both assets years. service, of And marketing

Operator

Sachs. question Alex next of Blostein from the Your Goldman line comes from

Alexander Blostein

the WestEnd wanted to the that's on made follow I you sounds up financial comments meaningful on round around product up advisers. made Advisors. like It getting traction

to a that about under if can Victory? uplift get for think stat the set up something help there? market addressable get the have you that little utilize What bit the WestEnd, to of what's us a framework Can average So terms like flow and a I the trying think AUM within you opportunity AUM headcount. the that in a Just in advisers frame create maybe they see better XX% to cited of that. meaning the you level? others that similar could umbrella

David Brown

their and said when opportunity acquired for really and into out had this for them So us to gone distribution be WestEnd, an we capabilities. grow that our going to we plug to was business

platform, accounts. number MODL, to doing successful, which of increased been the product it We've with been stated, is, set by 'XX And every beginning them. organic 'XX. also And that their the have of has positive business since growth their as growth we've and were was the ETF, inception, platforms model XXXX, organic that since that WestEnd launching on, we've advisers delivery really allows also so is the of acquired they period the their them, advisers it's there number product is in and which expanding of increasing time access and are just really part in not first positive through

will the into, happens lot of And has couple they Typically, start are ways. grow different into that adviser small off There grow of a they and the grow relationship. WestEnd into area larger then eventually them so momentum. we a opportunities client will a will we'll of is with definitely in and that market what

And WestEnd over allocate adviser the product capture of the So time, percentage then will more. book. will adviser's a the

really an grow be material there's adviser it what opportunity a of WestEnd I capture or if So some the on will will impact then new look to growth we advisers, historically be think I that of the growth if have at share, look of part is relationship be can it market organic will for for at on with market the you dollar and the we our would existing AUM the part is. story.And and platforms. get their growth have share of don't an organic the an the way if increase projections our a story. you our think you successful average amount and with advisers what the we they size But

Alexander Blostein

Yes.

just And deal sense. follow-up for things. side a Makes quick Okay. transaction and then of on the

will based So sounds balance your remind terms debt leverage be EBITDA? high side. feel the it capacities on and you how on us in you Can comfortable it what larger strategic sheet, just going help on the the guys like to of comments,

Michael Policarpo

level exact never really Yes, that to. commit would an I we set we've think

we The different ability about professional in comfortable as to we're generate growth we We've we're thought also the past of to we're and we've cash about bunch a used leverage cash. think prudent that of a right an expand M&A. inorganic thinking we've from very X.Xx where revenue the used marker sharing do think components, significant comfortable in pretty have amount deal. about perspective. tools fortunate earn-out that for and we supporting clearly, the the But I and component investment debt generate, the as with are, for for how been at in

think that, to suggesting suggesting the you really the have earnings X.Xx, well did transaction, in point of flexibility. cash that's the I'm that, out the when just so not us comfort a were power not we And level. But we there. I'd I'm throw that's accumulation that That's I a the USAA we leverage historical if with brought the cap, X.Xx. as XXXX data down backwards expansion as both provide look

deal thoughts be So as circumstances on think prudent. But and specific leverage. the I as drive structuring perspective think from is will kind each I a facts pretty we'll us well of in

Operator

Adam comes next line UBS. of the Your from Beatty question from

Adam Beatty

up of the Just the retirement channel, vehicle wanted and in much discussion other dialogues to maybe the going follow details you there? your more growth intermediaries sponsors around efforts either on or some see CIT some how are and on plan with get how

Michael Policarpo

Yes.

we earlier, CIT back full mentioned Dave MBO As pretty the since going have have actually to a really suite of offerings and XXXX.

have to over investment agnostic more from more and as several franchises. said, of platform we're respect perspective. our our we've really there great had the to a through and As always increasing years think the retirement out offering that opportunity with opportunity pretty network product penetrate success vehicle different And we last vehicle an CITs a are

institutional to that clients out institutional to it found that we useful in and we extremely have can end see mandates, use Additionally, CITs, also beneficial be some there. lower

investor a on classes platforms really provides on well our have as with CITs that across of different the to a really to bases set us from assets, tremendous CITs, various there of our our capture platforms. getting different placed opportunity as advisers, ETF opportunity handful retirement than and we capture have financial offerings platforms share across number and out mutual a more fund We with getting franchises placed the

moving that for both macro as institutional. us staple and So changed forward, in it's over to think something us a environments retirement for growth as been have a engine we time, as well be will continue

David Brown

two add would I Mike, And that. things on

do time. the is cycle servicing sole a of and quite long in getting for sales I we've periods assets group, typically those in are And think long, then their access And platforms platforms. have on product clients that sales and stay focus very had over one dedicated years. is but is those that your we place sticky retirement as

and grow, as very of continues also we it's We market. and market that of part like view part an that the to area that the predictable,

or I think what we as said, think as think launch we what will side, Mike will the about product client So really be. retirement what it's demand I franchises the in

Adam Beatty

as uplift And which you seasonally it. for we positive be Got head expect retirement, in first there? into the can quarter, an would flows sometimes

David Brown

It's a few a days. month and through only

would sideline So what where seeing we're to not predictable are I the not sitting we're on and on in market is even like in say the what I'm cash. times going investors comment very this most retirement seeing. just

Operator

Lee Your next question Kenneth of Markets. RBC Capital comes line from from the

Kenneth Lee

you year, as look see some growth or you strategies areas I you of or just out areas opportunities potential growth could wonder further there. the like highlight where potential organic best organic speaking, if out opportunities broadly particular Just this any could

David Brown

no Sure. think business model priority or we And order, specific and franchise their a WestEnd advisers of delivery momentum. lot has the in

we'll anticipate of investment That's that income channel. has excellent point Global expect we so And institutional part our XXXX, ETF performance the I capacity be perspective. our made we then assets cap, constrained from and RS those cap think RS growth some few positive well. distribution channel we performance business investors, our a some we another momentum channel from that our have, perspective, net and we'll see the that the have Then some in in in say, will was given that fixed Victory a fourth U.S. that quarter. institutional moving has of speaking, parts some think And where franchise we distribution some to small see we headway areas trends flow we'll grow. in area.At business And well, that's income as well as ETF. integrity with and fixed area an would generally We with where grow. our have to includes a macro investment think of income U.S. growth of classes that in as value small asset great

Kenneth Lee

Very there. just may. Great. follow-up, if helpful I And one

in In spread change you're discussions expectations you've terms seeing of recently? color around been whether any expectations the or seller M&A potential bid-ask either a having, more

David Brown

environment buyer and unique seller say what execute, is the being or be year quarter we're over to last discussion is closer to have from to going think each execute. gotten is I'd And And to That a think I I an so. seeing expectations a close. have they've said, we the that be lot you perspective to where XXXX very can opportunity.

Operator

comes line question Stanley. Your of next the Cyprys Morgan Michael from from

Michael Cyprys

ETF to Maybe off nearly and set wanted some how could today. that? of product to the start distribution this to you at assets billion about where steps see you're franchise, you'd and taking the like compared to is out the of point Just talk built $X growth on accelerate

David Brown

our retail force. have and force ETF part we existing of really our intermediary So sales sales is

and ETF. So build our to both sell sales just started funds sales out and that We've mutual to ETF-only enhance force. folks

we and something So XXXX, out started to that's in we'll XXXX. continue build in

have ability we in of really ETF in launched talk to all sell about XXXX. out have new few a the ETFs.We've field our the and So salespeople ETFs to

plans to launch more I would like than We have to have more in XXXX. not. ETF

buyers there a since ETF for the aren't types I XXXX. funds certain a doesn't in business buyers lot the mutual funds. with in situations. ETF types clients work ETF. mutual been mean of of of that look clearly, that portion maybe bought that We've of think certain well That But at we'll before,

we're Victory that think So well And under it. business. pretty the we can grow experienced. brand, understand we We Shares

to of different would a solution more I And for asset different us of expect so so with classes really clients. 'XX and solutions in a number of types ETF different in launch number type

Michael Cyprys

the account to saw And a accelerate new on just maybe have accounts you how you channel. just Great. 'XX for registrations. you in steps in maybe the about And terms And taking the question direct on direct flows vision update what much in in just elaborate of growth. the us you you you're channel. long-term just I hoping assets on was and follow-up some talk 'XX, could and could have, of

David Brown

So flows. we don't disclose channel specific the metrics as direct accounts or far as for

report in won't I'll any color. I then building those, So into you is What some 'XX we and going capabilities. really give but 'XX saw of out

launch. products that longer to day. of really issues. the and good which really, ensuring is and behind it and a lot clients clients, good addition have and making experience experience, our look our And a as the to understanding good existing in standard highest and think all new talking have about we So assets. of technology the what's the those brokerage And that platform getting building the service service go brokerage the think vision sure a them set launch products, our for to we're think they our Victory through was we is we make a of product at clients we when client well, platform, our the our what we every that just longer of number I term, have work ability set to thinking And base through term really is, new to as business have clients wide can addressing a new that also to of do important sign and history on grow sign out really We them. up up of

work that. through So we as to continue

an we're I growth. you'll measurable into significant see it channel, should doing that and or think term, have be where area us it job, longer will and excellent an turn

Operator

comes Howlett final Our Riley. B. question today from Matthew from

Matthew Howlett

around the think when M&A 'XX. returns you today. easily thought And then on the could buybacks. your How they much M&A? XXXX, excited stocks hear do high off what last start for that the with a on million, occurring year. question dividend of subject the love head you're with I will XX-week a just XXXX. increase, to to depend a hit buybacks on in and in $XXX is get Just investors is XX% My what on potentially increase The see capital I'd

Michael Policarpo

our think execute us unchanged. been flexibility differentiated and Yes. clear has I very we've strategy, been for include really really policy we to organic our about growth. We Yes, as capital which Thanks, continue want Matt. does the to think

you And overall M&A shareholders our quarter between circumstances. to something perspective. with feel this strong buybacks from did balance the still and we our mentioned, picture we dividend and and ancillary Really, for so we is to that is business a increase think respect the as a about which reward X%, really facts is

So it we at ongoing. do look

of think I in something for or us, we from M&A shareholders. think on of creation a right value active pending that's done long-term perspective, we're for absence M&A we and front an executed as sits have said, that the a and differentiator In buybacks. our we've do

looking So and at it all those really is of across components. a balance

looked we at Board million prepared in approved XXXX. our We were our in opportunistic December. mention We buyback You $XXX very did buybacks. remarks, that. mention increase In did did we program with a our respect to that

as think buybacks, both have as we to do the all So M&A well about and ready are dividends. tools

trying drive And in like all that, to we'll what shareholder going be forward. circumstances facts us. that at continue we're a really balancing perspective really return, and pretty to of balanced looking to front of with and really feel we with a done come does of it good job So but of in all do we've that that sits

David Brown

just add Mike, that. And to Yes. to

First our sure and to making sheet around foremost is support always initiatives set our strategic that is balance acquisitions. up

committed we through shareholders and absolutely And that that being said, so over through that And for vehicle best term. buybacks. we think But have ensuring return and to capital shareholder is also are long that's foremost. the first to I dividends returning the

out. that shows that done history a we've balancing job really Our good

all benefit acquisition that great of a of cash flow it. of free and But the to and throws we lot a having balance a have benefit the so we all to that environment of being impacts and off choices having to able of business of have lot do it. the And really

built that reward is And back has lot of business shares. can a cash a for that free so that's acquisitions. also we we can sizable flow can having pay We of dividends, buy and strategic a do the lot

Matthew Howlett

Yes.

buybacks. certainly, dividend look multiple on record at speaks both track have itself the value and the congrats to the buying You you were group upsizing I'm in But see the track the the your repurchase great a versus program. share sure peer and and of back shares.

the there second the question, flow? with versus outperformers be the sauce follow-up and seem to platforms, lead quarters. secret last lead? outperformance you they just in in always is the subsidiaries? net always have always on to West, RS, going just it's just platforms X Or to and The Or X the outflow, Is the ebb the sort they of the be are positive other outcomes going to of those sort any just

David Brown

a of into think It's situation factors hard look the very quarter-to-quarter. I there's at flow to quarter-to-quarter. that number it goes

I set, good investment and said good performance a very really distribution. competitive and earlier, As product some has WestEnd tailwinds industry

other record. to it I is is environment WestEnd a sitting That but very biggest investors and area it's anticipate It side, that Global where ebb don't institutional us starting headwind growth change. will as there's number we also not see and RS franchises are momentum the have in will on change. product. the And flow, more for type think we continue. The an and We organic know So is you'll investments. gain track of macro will to allocating changes. long-term cash competitive when risk a where a the will environment

a position very we're I happens, and number we good built to when products. have and And be a years, change. we really will lot to distribution performance channels the that closer as think a in competitive over think getting capture that I we change those of investment assets

Operator

David for turn That now call question-and-answer concludes our closing remarks. back session. over I the Brown will to

David Brown

will RBC attending Financial XX, you. Markets Later And for XXXX we attending Bank Securities Miami. day, Financial a Conference Thank Capital of in of in Conference Services be the those in on March month, York. New Institutions this Victory look We on X, be America February some the to Have you Capital. at your thanks Global interest seeing events. forward and wonderful we'll

Operator

you disconnect. conference for participation, This Thank now and concludes call. you may your today's

Victory Capital (VCTR) 9 Feb 242023 Q4 Earnings call transcript