Victory Capital Holdings, Inc. (VCTR) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

which they sought to expand to better satisfy demand from their clients across the globe. Victory Capital now serves as a Monday's US manufacturing platform, which includes the legacy Pioneer Investments product set, but also includes the legacy Victory product set. Most of the other cross-border distribution deals are not set up this way. Essentially, we took over an efficient and highly productive US investment manufacturing arm that was deeply ingrained in the Amundi distribution system, and we are now adding legacy Victory products to it. Think of a freight train moving forward on the tracks, and we are just adding the Victory freight cars to an already fast moving and fully operational train. This is why we are so excited about the opportunity over the long term. The economic alignment is there for the organizations as well, in addition to Amundi's 26.1% economic ownership. There is a sharing of the fees by both organizations at the point of sale. Amundi earns fees if they sell Victory products, and Victory earns fees for being the investment manager. In a lot of cases, the Amundi point of sale fee exceeds the standalone fee if they were selling an Amundi manufactured product, given the active nature of our product set. And that is all before factoring into 26.1% economic ownership. As far as the opportunity set goes, we are very excited about the entire Asia region where there is a high demand for US dollar denominated products. The Middle East is another market that has caught our attention. Amundi has a great distribution network in both regions. In Europe, Amundi enjoys a dominant position in many distribution channels and geographies that are very difficult to penetrate. I also want to make a point here with some of the recent news reported from Amundi arou...